Simula Provides Guidance On Outlook for Fiscal 2000

    PHOENIX--Feb. 15, 2001--Simula Inc. (Amex:SMU) today announced that consistent with a program to exit unprofitable businesses and concentrate on the company's core competencies, it anticipates it will report a loss in the fourth quarter and for fiscal year 2000 due to one-time, predominantly non-cash write-offs.
    Brad Forst, who in October 2000 succeeded Donald W. Townsend as the company's president and chief executive officer, said the charges were occasioned by a recently completed review of each of the company's operating divisions as management implements its plans to focus its businesses, revamp operations and reduce product development costs.
    Associated write-offs will be principally related to assets not related to core businesses; proposed plant consolidations, reduction in the scope of research and development, and write-offs of certain long-lived assets, PP&E, inventory, and accounts receivable. Additionally, the company said that it will increase its reserve in connection with its disposition in February 2000 of its Airline Interiors subsidiary.
    The company anticipates that the write-offs will result in a net loss in fiscal 2000 in the range of $4 to $5 million. The anticipated results differ from the company's earlier reported expectations of positive net income of approximately $1.7 million. The company said that it will report its audited year end financial information in connection with the filing of its annual report on Form 10-K in late March.
    Forst noted that although the one-time charges may put the company in violation of certain loan covenants, cash-flow is more than adequate to service the company's debt and no monetary default has occurred or is anticipated. The company will be seeking limited waivers of the covenants.
    The company also announced that it has engaged two investment banking firms in connection with potential balance sheet restructuring or refinancing transactions.
    "When I became president and CEO of Simula, I promised our board and shareholders that I would carefully examine every element of our business to improve shareholder value. Today's announcement represents the completion of an important initial phase of that process," said Forst. "Simula is a business that we are fixing. Our write-offs for past issues and our new scope of operations are carefully calculated and part of a highly focused discipline to turn the company around and build value for shareholders."
    According to Forst, business in the company's core segments remains strong, and he anticipates that the company will shortly be in a position to provide guidance on expected top-and bottom-line growth in fiscal year 2001. He said, "The focus on operations and significant reduction of expenses will be reflected in positive results in 2001."
    Simula is a diversified technology company that designs and manufactures occupant safety systems and devices engineered to safeguard human life in a wide range of air, ground and sea transportation vehicles. The company operates in two principal markets that are aligned with its core technologies: aerospace and defense systems, and automotive safety systems.
    The company's core products and technologies include inflatable restraints, energy absorbing seating systems, advanced polymer materials, transparent and opaque armor products, personnel protective equipment and parachutes, and crash sensors. Additional information can be found at www.simula.com.

    Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements that involve risks and uncertainties that may cause the company's actual experience to differ materially from that which is anticipated. These forward-looking statements include statements about anticipated charges in the fourth quarter and fiscal year ending Dec. 31, 2000, the ability to focus on core businesses and reduce expenses, and ability to comply with loan covenants or obtain waivers, and capacity to meet debt covenants and obligations. If not waived, covenant violations could result in the company's senior lenders asserting their remedies under applicable loan documents, including claims for default interest. Actual results may differ materially from those projected. Additional risks include those described herein and in the company's registration statements and periodic reports filed with the U.S. Securities and Exchange Commission.